Unorganised mobile retailers feel the heat in India

Posted on December 28, 2007  /  0 Comments

Swami is an employee of My Mobile store in Noida can tell how the mobile business at his store has been dwindling in one of the most popular markets in New Delhi region for mobile phones and its accessories. Before January, My Mobile would sell goods worth about Rs 2.5 lakh on any given Sunday but sales started dipping about four to five months ago and the Sunday before Christmas, which should have been a busy period, with sales being down in the range of Rs1 lakh. “Our future is in danger,” Swami says pointing to a Sony Ericsson Mobile Communications’ service centre that doubles as mobile phone retail store located bang opposite My Mobile outlet. The Sony store opened a year ago.

Several of the large Indian companies are lining up thousands of crores of rupees investment plans to open chains of stores selling mobile phones and accessories to capitalise on two of the country’s fastest growing sectors — modern retailing and mobile telephony.

The unorganised groups which currently dominate the mobile retail business now say that their businesses are under threat, thanks to cheaper prices at companies who already have opened mobile phone stores nationwide and have aggressive plans in the coming years. Essar, Spice and RPG put together have plans to invest about $800 million in the next two to three years in mobile retailing alone.

Read the full story in ‘Hindustan Times’ here.

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